Save money with zero percent financing.

You might be wondering what zero percent financing is. It’s a widely used marketing strategy. It plans to attract buyers of real estate, automobiles, consumer goods, and even credit cards. It’s also known as discounted finance and when given to a buyer, it is not imposed with any interest for a specified period under certain conditions. In the case of purchasing an automobile, taking a zero percent financing deal can help you save lots of money in interest payments over the life of your car loan.

How Does Zero Percent financing come to be?

When automakers want to clear out the existing inventory to create room for others, or even to increase sales of slow-moving vehicles, they usually apply this financing incentive to entice buyers. This incentive follows a strict arrangement or rather pattern where it usually peaks during the summer months to increase the demand and sale of an outgoing model in that particular year. Carmakers usually advertise this deal on their websites, at dealerships, or on commercials.  Each dealer usually has their rendition of zero percent financing to offer. Typically when a buyer qualifies for a loan but has a low annual percentage rate, the dealership may come in to cover the interest on the loan to make the deal more attractive.

How can one qualify?

This incentive is typically constrained to buyers with an outstanding or rather distinctive credit score. Regardless if you have a low score you are advised to still check on the zero percent offers as you may surprisingly find out that you are approved simply because of your good history of meeting obligations on time or even being loyal or devoted to that car brand. Additional factors an automaker considers are:

  • Employment history
  • Income and address verification
  • Debt-to-income ratio

Nevertheless, you should take your time and weigh matters while also seeking preapproval from other financial sources outside. This is advised because in the case where you, unfortunately, don’t qualify for the loan, a backup plan will still exist.

Zero percent financing versus bonus cash.

Automakers offer zero-percent financing to attract buyers to their company and not their competitors. For this same reason, they often provide cash rebates to buyers too. Unfortunately, you can’t be allowed to enjoy both of these incentives. Therefore the dilemma is on you to choose the savings opportunity that works best for you.

The dos and don’ts of Zero Percent Financing.

If you decide that this incentive works for you, the following will help you maneuver through the process;


  • Make sure that you are capable of meeting monthly obligations.
  • Get preapproved before visiting the dealership.
  • Negotiate the purchase price first.
  • Check if the automaker can allow this offer together with the cashback incentive.


  • Avoid the down payment if you are within the financial capability of acquiring it.
  • Accept a short-term loan that you can’t afford.
  • Choose a long-term loan with lower payment but result in a high overall amount.


Having studied this financing option, you should not fear exploring it. As a warning, you should keenly look into the fine print and get to know the consequences of late payments or missing a payment. You should adhere to the dos and don’ts of zero percent financing.

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